Latin America Cosmetic Products Market

Sample
Latin America Cosmetic Products Market

(2015 - 2020)
Mordor Intelligence
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Mordor Intelligence | +1 617-765-2493 | No.30 Padma Nilaya, RT Nagar, Bengaluru, India 560032 | info@mordorintelligence.com
TABLE OF CONTENTS
1. Introduction
1.1 Key Deliverables of the study
1.2 Study Assumptions
1.3 Research Methodology
2. Executive Summary
3. Market Dynamics
3.1 Market Overview
3.2 Factors Driving the Market
3.2.1 Innovation in packaging and design
3.2.2 Aging population
3.2.3 Growth of E-Commerce
3.2.4 Increasing access to middle-bottom segment of pyramid of consumers
3.3 Factors Restraining the Market
3.3.1 New medical technologies for beauty enhancements
3.3.2 Volatile raw material prices
3.4 Current Market Opportunities
3.4.1 Possibility of offering imported cosmetics at reduced prices by specialist

companies
3.4.2 Growing demand for organic products
3.5 Industry Value Chain Analysis
3.6 Porter’s Five Forces
3.6.1 Bargaining Power of Suppliers
3.6.2 Bargaining Power of Consumers
3.6.3 Threat of New Entrants
Sample Mordor Intelligence

3.6.4 Threat of Substitute Products and Services
3.6.5 Competitive Rivalry within the Industry
3.7 Industry Policies
3.8 Consumer Behavior Analysis
4. Technology Snapshot
5. Latin America Cosmetic Products Market Breakdown by Product Type- Market Share, Forecast
Table: Latin America Cosmetic Products Market Forecasts (2015-2020) – Segmented by

Product Type
Figure: Latin America Cosmetic Products Market Share 2015 – By Product Type
5.1 Hair care
Figure: Latin America Cosmetic Products Market Share 2015 – Hair care
5.1.1 Introduction
5.1.2 Market Share, Size and Forecast
5.2 Skin care
Table: Latin America Cosmetic Products Market Forecasts (2015-2020) – Skin care
Figure: Latin America Cosmetic Products Market Share 2015 – Skin care
5.2.1 Face masks
Figure: Latin America Cosmetic Products Market Share 2015 – Face masks
5.2.1.1 Introduction
5.2.1.2 Market Share, Size and Forecast
5.2.2 Facial Cleansers
Figure: Latin America Cosmetic Products Market Share 2015 – Facial

Cleansers

5.2.3 Moisturizers
Figure: Latin America Cosmetic Products Market Share 2015 – Moisturizers
5.2.4 Anti- Agers
Figure: Latin America Cosmetic Products Market Share 2015 – Anti-agers
5.2.5 Skin Toners
Figure: Latin America Cosmetic Products Market Share 2015 – Skin Toners
5.2.6 Anti-Cellulite Body care
Figure: Latin America Cosmetic Products Market Share 2015 – Anti-Cellulite

Body care
5.2.7 Acne care
Figure: Latin America Cosmetic Products Market Share 2015 – Acne care
5.2.8 Lip care
Figure: Latin America Cosmetic Products Market Share 2015 – Lip care

5.2.9 Others
Figure: Latin America Cosmetic Products Market Share 2015 – Others
5.3 Oral care
Figure: Latin America Cosmetic Products Market Share 2015 – Oral care
5.3.1 Introduction
5.4 Color Cosmetics and Makeup
Figure: Latin America Cosmetic Products Market Share 2015 – Color Cosmetics and
Makeup
5.4.1 Introduction
5.5 Fragrances
Figure: Latin America Cosmetic Products Market Share 2015 – Fragrances
5.5.1 Introduction
5.6 Soaps and Shower gel
5.6.1 Introduction
5.7 Sun care Products
5.7.1 Introduction

5.8 Others
5.8.1 Introduction
6. Latin America Cosmetic Products Market by Distribution Channels- Market- Share, Forecast

Distribution Channels
Figure: Latin America Cosmetic Products Market Share 2015 – By Distribution Channels
6.1 Direct Selling
Figure: Latin America Cosmetic Products Market Share 2015 – Direct Selling
6.1.1 Introduction
6.2 Hypermarkets & Retail chains
Figure: Latin America Cosmetic Products Market Share 2015 – Hypermarkets and
Retail chains
6.2.1 Introduction
6.3 Specialty stores
Figure: Latin America Cosmetic Products Market Share 2015 – Specialty stores
6.3.1 Introduction
6.4 Pharmacies
Figure: Latin America Cosmetic Products Market Share 2015 – Pharmacies
6.4.1 Introduction

6.5 E-Commerce
Figure: Latin America Cosmetic Products Market Share 2015 – E-Commerce
6.5.1 Introduction
6.6 Salon
Figure: Latin America Cosmetic Products Market Share 2015 – Salon
6.6.1 Introduction
6.7 Others (Department stores, Mom & Pop stores)
Figure: Latin America Cosmetic Products Market Share 2015 – Others (Department
stores, Mom & Pop stores)
6.7.1 Introduction
7. Latin America Cosmetic Products Market by Geography- Market- Share, Forecast

Geography
Figure: Latin America Cosmetic Products Market Share 2015 – By Geography
7.1 Brazil
Figure: Latin America Cosmetic Products Market Share 2015 – Brazil
7.1.1 Introduction
7.2 Mexico
Figure: Latin America Cosmetic Products Market Share 2015 – Mexico
7.2.1 Introduction

7.3 Argentina
Figure: Latin America Cosmetic Products Market Share 2015 – Argentina
7.3.1 Introduction
7.4 Others
Figure: Latin America Cosmetic Products Market Share 2015 – Others
7.4.1 Introduction
8. Vendor Market Share
Figure: Latin America Cosmetic Products Market - 2015 – Vendor Market Share
9. Company Profiles
9.1 L'Oréal S.A.
9.1.1 Overview
9.1.2 Financials
9.1.3 Products
9.1.4 Recent Developments
9.2 Procter and Gamble Co.
9.2.1 Overview
9.2.2 Financials
9.2.3 Products
9.3 Beiersdorf AG
9.3.1 Overview
9.3.2 Financials

9.3.3 Products
9.4 Avon Products, Inc.
9.4.1 Overview
9.4.2 Financials
9.4.3 Products
9.5 Unilever
9.5.1 Overview
9.5.2 Financials
9.5.3 Products
9.6 The Estee Lauder Companies, Inc.
9.6.1 Overview
9.6.2 Financials
9.6.3 Products
9.7 Shiseido Company, Limited
9.7.1 Overview
9.7.2 Financials
9.7.3 Products
9.8 Kao Corporation
9.8.1 Overview
9.8.2 Financials

9.8.3 Products
9.9 Revlon, Inc.
9.9.1 Overview
9.9.2 Financials
9.9.3 Products
9.10 Mary Kay, Inc.
9.10.1 Overview
9.10.2 Financials
9.10.3 Products
9.11 Yves Rocher
9.11.1 Overview
9.11.2 Financials
9.11.3 Products
9.12 Oriflame Holding AG
9.12.1 Overview
9.12.2 Financials
9.12.3 Products
9.13 Alticor Corporation
9.13.1 Overview
9.13.2 Financials

9.13.3 Products
9.14 AmorePacific
9.14.1. Overview
9.14.2 Financials
9.14.3 Products
9.15 Natura Cosméticos S.A.
9.15.1. Overview
9.15.2 Financials
9.15.3 Products
10. Investment Analysis
10.1 Recent Mergers and Acquisitions
10.2 Strategic Alliances
10.3 Investment Scenario
11. Future Outlook of Latin America Cosmetic Products Market

1. INTRODUCTION
1.1 KEY DELIVERABLES OF THE STUDY
 Global, regional and country-level analysis along with forecasts of the study market
 Study of the effect of exogenous & endogenous factors, viz. demographic, economics, and
political factors, among others, which affect the Egypt market
 Porter’s five forces framework incorporating the factors influencing each force to determine
the intensity of competition
 Segment and sub- segment level analysis of the market over the review and forecast period
 Identification of key factors instrumental in changing the market scenario, exploiting new
opportunities, and gaining competitive edge
 Analysis for key players and a detailed study of their current strategic interests and key
financial performance indicators

1.2 STUDY ASSUMPTIONS
 The base currency considered was the US Dollar (USD). The conversion of other currencies to
USD was considered based on the average exchange rate for the respective review period
years. The exchange rate conversion for forecast period was determined according to the
base year’s conversion rates.
 The base year was identified based on the availability of annual reports and secondary
information. The base year considered for this study is 2015.
 The review period considered for this study is from 2011 to 2015. The forecast period is from
2015-2020.
 Market size estimations for the forecast years were in real terms. Inflation is not part of the
pricing and the Average Selling Price (ASP) was kept constant through the forecast period for
each country.
 Distribution of primary interviews conducted was based on the regional share of the market
and the presence of key players in each region.
 As a result of data-triangulation through multiple methodologies and approaches, the

weighted averages of resulting estimates were considered to be the final values.

RESEARCH METHODOLOGY
INTRODUCTION
The research process adopted for this entire study is a highly structured two stage process: size
estimation of the review period, and the market engineering for the forecast period of the global,
country and segment-level data that lead to the Data Generation Process (DGP) for the studied
variables. The size estimations were carried out through multiple bottom-up & top-down approaches.
The bottom-up approach includes the examining of historical revenues of key players, studying the
size of the applications, value and supply-chain analysis, end-user demand, which are then cross-
validated by secondary and primary resources. The top-down approach is an astute research process
where the global market sizing is carried out through the secondary research, validated by primary
industry experts.
In this report, for analyzing the future trends for

the studied market during the forecast period, we
Secondary
have incorporated rigorous statistical and Research
econometric methods, further scrutinized by

secondary, primary sources and by our in-house Expert Primary
Validation Research
experts supported through our extensive data Market
Engineering
intelligence repository. The market is studied
holistically from both demand and supply-side
Value-Supply
Econometric
perspectives. This is carried out to analyze the Chain
Modelling
Analysis
end-user and producer behavior patterns in the
review period that affect the price, demand and
consumption trends. As the study demands analyzing the long-run nature of the market, the
identification of factors influencing the market is based on the fundamentality of the market that is
studied. Through secondary and primary research, the factors that are endogenous & exogenous in
nature are identified, and they are transformed to quantitative data through data extraction and
further applied for inferential purpose.

ANALYSIS METHODOLOGY
Market Definition Segmentation

Technology /
Market
Key Countries / Mapping of Key
Identification
Regions Players
Study Structure
Data Extraction Process
Value / Supply Validation of Top-Down

Data Corroboration
Chain Analysis Market Size Approach
Estimates
Analysis
Identification Consumer Bottom-Up
(Econometric Forecast
Modelling + Secondary of Exogenous Behavior Analysis Approach
Research + Expert) Factors
Verification)
Market Dynamics Segment
Inference Recent Market and Region-
Data Generation Process Developments wise Market
/ Competitive Market Structure Size
(DGP) and Forecasts
Landscaping Analysis Forecasting
Info-graphical and
Comprehensive
Presentation of Inferences
and Estimates
Competitive
Market Share Market Sizing
Landscape
Company Porter’s Five

Market Structure
Profiles Forces Analysis

STUDY PHASES
Secondary Primary Discussion Econometric Expert Data Report

Research Research Guide Modelling Validation Triangulation Writing
SECONDARY RESEARCH
The first phase of the research process is an extensive secondary research and identification of the
related intelligence from our data repository on the study market. Secondary data is compiled from
various database such as industry bodies, associations, journals, company annual reports, white
papers and research publications by recognized industry experts, paid data sources and other
published literature. Data regarding the business plans and strategies of the companies are derived
from the recent annual/investor reports of key industry players for qualitative comparisons and
analysis; financial data of these companies sourced primarily from Industry Association & Stock
Exchange Filings to maintain a standard benchmark.
DISCUSSION GUIDE
A next phase is preparing an exhaustive discussion guide. The primary purpose of this phase is for
extracting qualitative information regarding the market from the key industry leaders. Such collated
information is further carried out for quantitative analysis. The document helps in identifying the
major segments, market factors such as drivers, restraints, challenges, key economic factors,
interaction between the players, supply-value chain structure, bottom-up and top-down nature of the
market, competitive landscape, recent long-run and short-run strategic developments, and market
share of the key players. The document helps in deciding the scope and deliverables of the study in
terms of the requirement of the market.

ECONOMETRIC MODELLING
The next phase is market engineering, which involves analyzing the collected data, market breakdown
and forecasting. Macro & micro economic indicators,
which are exogenous & endogenous in nature are
identified, through causal & correlation analysis, which
are further analyzed with the study variable for deriving
the statistical inferences on the study market. A
structural forecast model is developed in the process,
and the most statistically reliable model was considered
for the forecasting purpose. Methods such as Markov Chain and Monte Carlo simulation are used to
estimate the dynamics between the sub-segments. Such attained data points are verified by the
process of data triangulation which includes expert opinions and primary sources, to validate the
numbers and arrive at close estimates. Following data validation, the analysts begin to write the
report. They garner insights from data and forecasts, which are then drawn to visualize the entire
ecosystem in a single report.
EXPERT VALIDATION
The final phase before the report writing is the expert validation, where, the estimated and projected
values through data triangulation are cross-validated through market experts or the key industry
people. They can be senior researchers, Directors, CFOs, CEOs. The cross-validated estimated are
finally approved by the in-house experts.

3. MARKET DYNAMICS
3.1 MARKET OVERVIEW
The Latin American cosmetic products market was valued at USD 48.05 billion in 2015. The cosmetics
or beauty products industry is a sector that remains impervious to the ups and downs. Overall sales
are indeed affected in the event of an economic downturn; however, one can count on the sales of
cosmetics to maintain a certain volume throughout. This can be attributed to the continuing and
growing usage of products by women, and increasingly, by men, across the region.
Cosmetics can be segmented based on the area of application. Skin is the most prominent area of
cosmetic application. There is a myriad of cosmetics applied to the skin. Primer minimizes the
appearance of pores on the skin, thereby making the skin look smoother. Foundation is a colored
cream, used to reduce skin color irregularities across the face, especially in areas such as under eyes,
around the lips, T-zone, etc. Concealer conceals blemishes, marks and other conspicuous
irregularities, whereas face powder is used as a standalone or as an add-on to foundation (as a powder
foundation), which is especially effective in hot and tropical climates. Other add-ons include
bronzer/blusher for use on the cheeks to add color to the face, face contour creams or powders to
enhance the angles of the face for a slimmer and well-formed appearance, highlighter to add glow to
the high points and angles on the face, and setting spray to help makeup stay longer.
Other cosmetics used on the face include cosmetics for lips and eyes. Cosmetics for lips include
lipsticks, lip stains, colored lip balms and lipglosses. Furthermore, the eye-area cosmetics include kohl,
eyeliners, eyebrow pencils (and recently, fake eyebrows), fake eyelashes and mascara, among others.
Another extension of cosmetics are nail colors. Apart from these, there are ancillary industries for
supportive products, such as makeup brushes, beauty blenders, etc.
The Latin American cosmetic products market suffered owing to the recession in 2009. Thereafter, in
specific regions, the market recovered and grew subsequently. However, volatile raw material prices
and leading cosmetic treatments hinder the market growth.
Recent trends include increased use of natural products to mitigate the effects of pollution, as well as
the harmful effects of chemicals used in manufacturing makeup. Furthermore, increasing disposable

income has led to a larger market for luxury brands, such as Dior, Guerlain, Clarins, Clinique, Lancôme,
Estee Lauder, Shiseido, etc. Distribution is pervasive through exclusive stores of luxury products in
malls or standalone, while e-commerce is emerging as a competitor to direct sales for all mass and
premium brands. Direct sales for Avon continue to hold its importance, as it grows in terms of market
value.
Customers are increasingly looking for value-for-money products, which are natural and beneficial in
terms of providing high-priced premium products at a lower than premium cost. The market is
expected to grow at a CAGR of 7.48%, reaching a market value of USD 68.93 billion by the year 2020.
It is expected to grow by XX.XX% of its current market size by the year 2018. The current market share
is XX.XX% and is expected to change by XX.XX% by the end of the forecast period. The introduction
of natural products from animals is also trending in Latin America.Major players in the Latin American
cosmetic products market, such as Natura Cosmeticos, Unilever and Avon, are facing quite a few
challenges in holding on to their humongous market shares due to the low barriers to entry to the
market.
3.2 FACTORS DRIVING THE MARKET
3.2.1 INNOVATION IN PACKAGING AND DESIGN
Consumers want more functionality and eco-friendliness in cosmetic design, which is leading to
exciting innovations in the packaging and design of the products. Packaging manufacturers are
offering creative technology and a wide variety of innovative choices to serve the market. For
example, years ago, tube products ranged from pigmented extruded colored tubes to process
printing and hot-stamped caps. The choices today include multi-layered extruded barriers that
can accommodate more aggressive products, soft-touch-feeling tubes, pearlescent and
holographic extruded tubes, custom die-cut tubes and halftone printing to create a faded look.
There are several trends that have varying influence, depending on the market. The travel -easy
packs enable consumers to have a greater range of products they can carry on flights . These
small packs also enable them to change products more often in accordance with the reigning
trend. The other trend is the perception of lack of time for consumers, as they are growing less

inclined towards taking a lot of time to apply cosmetics. This has driven the rise of more
functional applicators, for example the use of mascara.
The other important aspect that is taken into consideration is sustainable and eco -friendly
packaging. Increasingly strict waste regulations globally and growing environmental
consciousness are compelling the cosmetics products industry to take steps to lean towards
green packaging. The industry is beginning to reduce packaging complexity. Various major
companies show visible innovative changes in the packaging and design. For instance, Procter
& Gamble recently announced a major shift to plant-derived packaging for some of its leading
global cosmetic brands. The company is using sugarcane-derived plastics. In addition, L’Oréal
recently helped reduce the environmental impact of its packaging by introducing two new
assessment tools to its package design process, ‘sustainable packaging scorecard’ (SPS) and
‘packaging impact quick evaluation tool’ (PIQET).
Cosmetics are trend-oriented; therefore, there are rapid changes happening in the industry in
terms of color and product type. These changes are also translated into packaging, with a vast
range of package types, sizes and shapes, and these can change on a regular basis.
Innovations and new design patterns as per the requirement of the customers for ease of
functionality helps the market to grow.
______ (Detailed Analysis available in the full Report) ______

3.6 INDUSTRY ATTRACTIVENESS – PORTERS 5 FORCES ANALYSIS
Threat of New Entrants

Government policy
Capital requirements
Economies of scale
Economies of product differences
Product differentiation
Switching costs or sunk costs
Access to distribution
Industry profitability (Market CAGR)
Bargaining power of Buyers

Bargaining Power of Suppliers Competitive Rivalry between Existing Buyer concentration to firm concentration
Players ratio
Supplier switching costs relative to firm
switching costs Sustainable competitive advantage through Degree of dependency upon existing
innovation channels of distribution
Degree of differentiation of inputs
Competition between online and offline Bargaining leverage, particularly in industries
Impact of inputs on cost or differentiation companies with high fixed costs
Presence of substitute inputs Level of advertising expense Buyer switching costs relative to firm
Strength of distribution channel Powerful competitive strategy switching costs
Supplier concentration to firm concentration Firm concentration ratio Buyer information availability
ratio Force down prices
Degree of transparency
Availability of existing substitute products
Threat of Substitutes
Buyer propensity to substitute
Relative price performance of substitute
Buyer switching costs
Perceived level of product differentiation
Number of substitute products available in the
market
Quality depreciation
Availability of close substitute

Porter’s Five Forces model studies the five identified competitive forces that shape every industry &
every market to determine the intensity of competition, and hence the profitability & attractiveness of
the industry. The objective of growth strategy should be to adapt to these competitive forces in a way
that improves the position of the organization. This study includes an exhaustive Porter’s Five Forces
framework incorporating the factors influencing each force to analyse the market from a
microeconomic perspective.
In the study, the Porter’s five forces is analysed considering the factors influencing each force and
quantifying the factors through primaries and quantitative analysis. The quantified factors are further
mapped to derive the impact of each force on competitive dynamics.
Government policy
10
Industry profitability 8
Capital requirements
(Market CAGR)
6
4
2
Access to distribution 0 Economies of scale
Switching costs or Economies of product

sunk costs differences
Product differentiation
*Threat of New Entrants: The analysis for this force is carried out by considering several influencing
factors such as government policy, capital requirements, economies of scale, economies of product
differences, product differentiation, switching costs, sunk costs, access to distribution and industry
profitability. Following the quantification and rating of each factor, the data is scrutinized to derive the
impact of the force on the market dynamics on a scale of low-high-medium.

5. LATIN AMERICA COSMETIC PRODUCTS MARKET SEGMENTATION BY

PRODUCT TYPES (SIZE, VOLUME & FORECAST 2015-2020)
Cosmetics are substances that are used for cleansing, beautifying and increasing attractiveness or
modifying appearance of body parts or the complete body. The Latin America cosmetic products
market is segmented by product types as Hair care, Skin care, Oral care, Color cosmetics and Makeup,
Fragrances, Soaps and Shower gel and, Sun care products.
Latin America Cosmetic Products Market Share- By Product Types (%) – 2015
Hair care
Skin care
Oral care
SAMPLE FIGURE Color cosmetics and Makeup
Fragrances
Soaps and Shower gel
Sun care products
Source – Mordor Intelligence Analysis

Latin America Cosmetic Products Market – By Product Types – USD billion – (2015 – 2020)
Segment Name 2015 2016 2016 2017 2019 2020 CAGR %
Hair Care XX XX XX XX XX XX XX.XX%
Skin Care XX XX XX XX XX XX XX.XX%
Oral Care XX XX XX XX XX XX XX.XX%
Color Cosmetics And Makeup XX XX XX XX XX XX XX.XX%
Fragrances XX XX XX XX XX XX XX.XX%
Soaps And Shower Gel XX XX XX XX XX XX XX.XX%
Sun Care Products XX XX XX XX XX XX XX.XX%

5.2 LATIN AMERICA COSMETIC PRODUCTS MARKET SEGMENTATION BY PRODUCT

TYPES- SKIN CARE (SIZE, VOLUME & FORECAST 2015-2020)
Skin care encompasses products that help consumers to maintain and repair their skin. The segment
comprises of moisturizers, face and neck creams, cleansers, hand and body lotions, and other
products. In 2015, the skin care market held the largest share amongst the various product segments.
Increasing awareness about skin rituals, urge to maintain skin tone and obtain a beautiful and younger
appearance are driving the product sales, allowing for deeper penetration and expansion to the new
markets. Consumers are facing weather challenges in the form of dry & harsh winters and hot-humid
summers. Skin care products help consumers to combat these weather challenges. Global warming,
pollution and stress are also showing their impact on the skin. Many products are being launched to
cater specifically to these precise needs. Consumer’s belief in products has increased owing to
advancement in technology and science that have led to better-formulated products. Result-oriented
products have led to further development of the market.
Latin America Cosmetic Products Market Share- By Product Types- Skin Care (%) – 2015
Face masks
Facial Cleansers
Moisturizers
Anti-Agers
SAMPLE FIGURE Skin Toners
Anti-Cellulite body care
Acne care
Lip care
Others
Consumers are showing great interest in products formulated with natural and organic ingredients. In
Brazil, Natura the largest direct seller launched Natura Ekos that emphasizes the use of natural

ingredients that were used in traditional communities. The market is also witnessing a growth of
products with fruity flavor and botanical fragrance. Growing aging population in the region has
resulted in a rise of anti-aging products. Demand for anti-pollution products is soaring due to
degrading environments that consumers have to cope with. The market is expected to grow at a CAGR
of XX.XX%, reaching a market value of USD XX billion by the year 2020. It is expected to grow by
XX.XX% of its current market size by the year 2018. The current market share is XX.XX% and is
expected to change by XX.XX% by the end of the forecast period. The introduction of natural products
from animals is also trending in Latin America.
Latin America Cosmetic Products Market – By Product Types – USD billion – (2015 – 2020)
Face Masks XX XX XX XX XX XX XX.XX%
Facial Cleansers XX XX XX XX XX XX XX.XX%
Moisturizers XX XX XX XX XX XX XX.XX%
Anti-agers XX XX XX XX XX XX XX.XX%
Skin Toners XX XX XX XX XX XX XX.XX%
Anti-cellulite Body Care XX XX XX XX XX XX XX.XX%
Acne Care XX XX XX XX XX XX XX.XX%
Lip Care XX XX XX XX XX XX XX.XX%
Others XX XX XX XX XX XX XX.XX%
Anti-aging benefits of activin, a protein that promotes collagen production to heal wounds, is now
becoming widely known. Currently, Avon is the only company that creates activin from certain Asian
plants to create anti-aging products.
Innovation in the skin care market has led to the development of products with multiple functions that
can serve several skin requirements; a growth in ‘All-in-One’ products in the market is expected.
Advances in science have also led to better-formulated products that deliver quick, visible results.
Moreover, short delivery times motivate product purchases.

5.2.3 MOISTURIZERS
The market for skin care moisturizers in Latin America was valued at USD XX billion in 2015.
Consumers are showing abundant interest in products formulated with natural and organic
ingredients. The market is also witnessing the growth of products with fruity flavor and botanical
fragrance. It is expected to grow at a CAGR of XX.XX%, thus reaching a market value of USD XX billion
by the year 2020. It is expected to grow by XX.XX% of its current market size by the year 2018. The
current market share is XX.XX% and is expected to change by XX.XX% by the end of the forecast
period. The introduction of natural products from animals is also trending in Latin America. According
to traditional skin care methods in Brazil, a moisturizer is not only expected to keep the skin
moisturized, but should also have anti-aging properties as well. Since creams have a better moisture
retention power than emulsions, major players in the region have raised the price of moisturizers over
the past few years.
The major market players in skin care are focusing on attractive and resilient markets with
differentiated growth potential within the direct sales model in Brazil and in other Latin American
countries, with the ambition and potential to expand in to other regions/countries.
Latin America Cosmetic Products Market – Skin care– Moisturizers

USD billion – (2015 – 2020)
SAMPLE FIGURE
2015 2016 2017 2018 2019 2020


DISTRIBUTION CHANNELS (SIZE, VOLUME & FORECAST 2015-2020)
The market for cosmetics in Latin America is segmented based on distribution channel, into direct
selling, super markets, specialty stores, pharmacies, salon, e-commerce and others. The usage of
cosmetics is growing at a fast rate. Hypermarkets contribute a major chunk in the cosmetic products
market. Hypermarkets steal the show with continuous improvement in the region. E-commerce is
expected to witness the fastest CAGR with rapid internet penetration in various Latin American
countries during the forecast period.
Latin America Cosmetic Products Market Share- By Distribution Channel (%) – 2015
Direct Selling
Hypermarkets & Retail chains
Specialty stores
SAMPLE FIGURE Pharmacies
E-commerce
Salon
Others

Latin America Cosmetic Products Market – By Distribution Channels –USD Billion (2015 – 2020)
Direct Selling XX XX XX XX XX XX XX.XX%
Hypermarkets & Retail Chains XX XX XX XX XX XX XX.XX%
Specialty Stores XX XX XX XX XX XX XX.XX%
Pharmacies XX XX XX XX XX XX XX.XX%
E-Commerce XX XX XX XX XX XX XX.XX%
Salon XX XX XX XX XX XX XX.XX%

6.1 DIRECT SELLING
Direct selling is the channel of selling products to customers away from the retail area. Cosmetic
products are often sold through the distributors’ personal network. The main purpose of direct selling
is to cater to a wider range of socioeconomic classes. Being a specialized channel of distribution,
direct selling is rapidly expanding. Direct selling enabled multi-level marketing for companies, as
diversification of cosmetic products took a paradigm shift with rapid evolution. Direct selling is
expected to witness a steady growth during the forecast period, with more recognition across various
countries. Our research shows that, direct selling of cosmetic products has a firm grip in Latin America
and Europe.
Latin America Cosmetic Products Market – Skin care– Direct Selling
USD billion – (2015 – 2020)
2015 2016 2017 2018 2019 2020
Direct selling is a traditional channel and the major countries adding value to the market include
Argentina and Brazil. The main factor driving the direct selling channel in various countries is its
tremendous professional opportunity for gaining superior customer experience. The market for direct
selling of cosmetic products in Latin America was valued at USD XX billion in 2015 and is expected to
grow at a CAGR of XX.XX%, reaching a market value of USD XX billion by the year 2020. It is expected
to grow by XX.XX% of its current market size by the year 2018. The current market share is XX.XX%
and is expected to change by XX.XX% by the end of the forecast period. Oriflame Cosmetics SA, Avon
Products Inc. and Natura Cosmetics SA are the major players in the region adding value to direct
selling.


GEOGRAPHY (SIZE, VOLUME & FORECAST 2015-2020)
Latin Americans are more engaged with cosmetic products than ever before, and they are conscious
about brands. The Latin America cosmetics market was valued to be worth USD 48.05 billion in 2015
and is expected to reach USD 68.93 billion by 2020, at an estimated CAGR of 7.48% during the forecast
period. Tapping into the region’s burgeoning sophistication and meeting the consumers’ high
expectations (in terms of a brand’s quality, functionality and price point) are the key driving factors
for the Latin America cosmetic products market. In addition, the malls and specialty stores are the
key factors for the growth of specialist retailers and department stores, which are coming up with
innovations in product design and packaging. In Latin America, the increasing population (aged above
55) and the nature of the regulatory environment are the factors that are hampering the growth of the
cosmetics industry. Latin American countries are working together in partnership to help strengthen
and further boost the cosmetic products.
Latin America Cosmetic Products Market Share- By Geography (%) – 2015
Brazil
Mexico
SAMPLE FIGURE
Argentina
Others

Latin America Cosmetic Products Market – By Geography – USD billion – (2015 – 2020)
Brazil XX XX XX XX XX XX XX.XX%
Mexico XX XX XX XX XX XX XX.XX%
Argentina XX XX XX XX XX XX XX.XX%
7.1 BRAZIL
The Brazilian population is very fashion conscious; however, inflation and market saturation may
begin to impact the industry strongly in the coming years. Furthermore, Brazilians have a keen interest
in cosmetic products. The investments in new products and innovation in marketing are the key
driving factors that are driving the Brazilian cosmetic products market to grow lucratively. In the last
decade, sales of cosmetic products rose by 10%, making Brazil the largest consumer of cosmetic
products in Latin America. Specifically in the Brazilian cosmetics market, fragrances and skin care are
the leading the segments. The Brazilian market for deodorants has one of the highest penetration
rates in the world. Nearly 75% of Brazilians use deodorants more than once a day.
The Brazilian cosmetic products market was dominated by fragrances & deodorants, followed by hair
care, bath care, and sun care products. Natura is the largest company in the personal hygiene,
perfumery and cosmetics sector in Brazil. It reaches around 100 million consumers and is present in
more than 60% of Brazilian homes. Brazilian consumers consume 12% of the deodorant market, and
in addition, they spend more money on perfume than any other nation. In Brazil, consumers spend
around USD 260 a year on cosmetic products. Furthermore, companies are investing in products with
high added value and multiple benefits, making sure there is diversity of products in the market. With
increasing spending on cosmetics by men and women, the cosmetic products market in Brazil is
expected to see a strong growth. The direct selling sector and specialist stores for cosmetic products
have the highest market shares in the country.

Latin America Cosmetic Products Market – Skin Care– Brazil

USD billion – (2015 – 2020)
SAMPLE FIGURE
2015 2016 2017 2018 2019 2020
The market for cosmetic products in Latin America was valued at USD XX billion in 2015 and is
expected to grow at a CAGR of XX.XX%, reaching a market value of USD XX billion by the year 2020.
It is expected to grow by XX.XX% of its current market size by the year 2018. The current market share
is XX.XX% and is expected to change by XX.XX% by the end of the forecast period.

9. COMPETITIVE INTELLIGENCE – COMPANY PROFILES
9.1. L’OREAL S.A
9.5.1 OVERVIEW
L'Oréal S.A. is a French cosmetics company, headquartered in Clichy, Hauts-de-Seine, with a registered
office in Paris. It has about 497 registered patents with 32 unique complementary brands.
The world leader in beauty, L’Oréal is present in 130 countries in five continents. The group's mission
is to provide the best in cosmetics to women and men around the world, with due respect for their
diversity.
L’Oréal, the world's largest cosmetics company, has developed activities in the field of cosmetics,
concentrating on hair color, skin care, sun protection, make-up, perfumes and hair care. The company
is active in dermatology, toxicology, tissue engineering, and biopharmaceutical research fields and is
the top nanotechnology patent-holder in the United States. L’Oréal currently markets its brands and
many thousands of individual products in all the sectors of the beauty business: hair color,
permanents, hair styling, body and skin care, cleansers, makeup and fragrances. The company's
products are found in a wide variety of distribution channels, from hair salons and perfumeries to
hyper- and supermarkets, health/beauty outlets, pharmacies and direct mail.
9.5.2 FINANCIALS (IN MILLION EUR)
Year Consolidated sales Gross profit Net income
2015 25.26 17.98 3.28
2014 22.53 16.03 4.91

Sales by Business Segment (2015)
4%
10%
SKIN CARE
29%
MAKE UP
13% HAIRCARE
HAIR COLORANTS
FRAGRANCE
OTHERS
20%
24%
9.5.3 PRODUCTS AND SERVICES
Products Description
This segment offers luxury cosmetic brands, such as Lancôme, Giorgio Armani,
L’Oreal Luxe
Yves Saint Laurent Beauté, Biotherm, Kiehl’s, etc.
Professional L’Oréal Professionnel is a global brand leader in its market, with an exclusive
Products presence in hairdressing salons. Offers cosmetic products under the brand L’Oréal
Division Professionnel, Kérastase, Redken, Matrix, etc.
The Body The L’Oreal group acquired the Body Shop in 2006; it’s an iconic British retail brand
Shop with an extensive and growing global presence.
The Consumer Products Division makes the best of cosmetic innovations

available to the greatest number of people on every continent. Its brands are
Consumer
distributed in mass retailing channels – hypermarkets, supermarkets, drugstores
Products
and traditional stores. These brands offer a wide range of coloring products, hair
Division
care, makeup and skin care under brands like L’Oréal Paris, Garnier, Maybelline
New York, etc.

9.5.4 RECENT DEVELOPMENTS
Date Recent Developments
The company announced that it was successfully able to reduce carbon dioxide
Apr, 2016 emissions by 56 percent against a 2005 baseline — even while increasing production
by 26 percent during the same period.
L'Oreal USA made a research partnership with Organovo to develop 3-D bioprinted
May, 2015
skin tissue.
L’Oreal inaugurated a new biomass plant in Burgos which will enable the site
Sep, 2014 specialized in the production of professional hair products to become neutral in CO2
emissions in 2015.
Sep,2014 L’Oreal obtained a business license for reconstructed skin models episkin in china.
Jan, 2013 L’Oreal commences new research & innovation center in India.

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Latin America Cosmetic Products Market

1.1 Key Deliverables of the study

1.2 Study Assumptions

1.3 Research Methodology

3.1 Market Overview

3.2 Factors Driving the Market

3.2.1 Innovation in packaging and design

3.2.2 Aging population

3.2.3 Growth of E-Commerce

3.2.4 Increasing access to middle-bottom segment of pyramid of consumers

3.3 Factors Restraining the Market

3.3.1 New medical technologies for beauty enhancements

3.3.2 Volatile raw material prices

3.4 Current Market Opportunities

3.4.1 Possibility of offering imported cosmetics at reduced prices by specialist

3.4.2 Growing demand for organic products

3.5 Industry Value Chain Analysis

3.6 Porter’s Five Forces

3.6.1 Bargaining Power of Suppliers

3.6.2 Bargaining Power of Consumers

3.6.3 Threat of New Entrants

Sample Mordor Intelligence

3.6.4 Threat of Substitute Products and Services

3.6.5 Competitive Rivalry within the Industry

3.7 Industry Policies

3.8 Consumer Behavior Analysis

Table: Latin America Cosmetic Products Market Forecasts (2015-2020) – Segmented by

5.1 Hair care

5.1.2 Market Share, Size and Forecast

5.2 Skin care

5.2.1 Face masks

5.2.1.2 Market Share, Size and Forecast

5.2.2 Facial Cleansers

Figure: Latin America Cosmetic Products Market Share 2015 – Facial

5.2.2.2 Market Share, Size and Forecast

Sample Mordor Intelligence

Figure: Latin America Cosmetic Products Market Share 2015 – Moisturizers

5.2.3.2 Market Share, Size and Forecast

5.2.4 Anti- Agers

Figure: Latin America Cosmetic Products Market Share 2015 – Anti-agers

5.2.4.2 Market Share, Size and Forecast

5.2.5 Skin Toners

5.2.5.2 Market Share, Size and Forecast

5.2.6 Anti-Cellulite Body care

Figure: Latin America Cosmetic Products Market Share 2015 – Anti-Cellulite

5.2.6.2 Market Share, Size and Forecast

5.2.7 Acne care

5.2.7.2 Market Share, Size and Forecast

5.2.8 Lip care

5.2.8.2 Market Share, Size and Forecast

Sample Mordor Intelligence

Figure: Latin America Cosmetic Products Market Share 2015 – Others

5.2.9.2 Market Share, Size and Forecast

5.3 Oral care

5.3.2 Market Share, Size and Forecast

5.4 Color Cosmetics and Makeup

5.4.2 Market Share, Size and Forecast

Figure: Latin America Cosmetic Products Market Share 2015 – Fragrances

5.5.2 Market Share, Size and Forecast

5.6 Soaps and Shower gel

5.6.2 Market Share, Size and Forecast

5.7 Sun care Products

5.7.2 Market Share, Size and Forecast